What happens to Carbones Pizzeria advertising monies collected that are not used in one year?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
Advertising monies we collect that are not used in one year will be carried over to the next year. Any interest the funds earn will be used for advertising before we use any principal. We may also allocate a portion of the funds to cover the costs of any of our employees who provide services to the fund. We will not spend any portion of any advertising fund for advertising principally designed to solicit the sale of franchises. Although we do not audit the fund, at your request, we will make available to you an annual accounting that shows how the fund proceeds were spent for the previous year.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 15–19)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, any advertising monies collected that are not used in one year will be carried over to the next year. Furthermore, any interest the funds earn will be used for advertising before any principal is used.
This policy benefits franchisees because it ensures that all advertising fees collected are used for their intended purpose: to promote the Carbones Pizzeria brand. By carrying over unused funds and prioritizing the use of earned interest, Carbones Pizzeria aims to maximize the impact of advertising expenditures and avoid wasting franchisee contributions.
While Carbones Pizzeria does not audit the advertising fund, they will provide an annual accounting that shows how the fund proceeds were spent for the previous year at a franchisee's request. This provides a measure of transparency, allowing franchisees to see how their advertising fees are being utilized and to hold the franchisor accountable for responsible spending.